Chapter 3307:1-4 Determination of Final Average Salary

The following criteria and procedures are established by the
state teachers retirement board pursuant to section
3307.501 of the Revised
Code.

(A)
As used in section
3307.501 of the Revised Code and
this rule, a percentage increase shall be considered to be generally applicable
if:

(1)
It is paid by a board of education
pursuant to a teacher salary schedule with the same employer without regard to
supplemental or extended pay contracts; or

(2)
It is paid by a board of education to an
employee not paid under the teacher salary schedule up to the amount payable
under the teacher salary schedule to teachers with equivalent service and
education without regard to supplemental or extended pay contracts;
or

(3)
It is paid by a university
or college as an average salary increase attributable
to academic services as certified by an authorized representative of the
university or college.

(B)
In determining
the highest percentage increase in compensation under division (B)(1) of
section 3307.501 of the Revised Code,
increases in compensation from one fiscal year earnings to another for which a
member has not performed full-time service as defined in paragraph (A)(1) of
rule 3307:1-2-01 of the
Administrative Code in either or both year(s) shall be the greater of:

(1)
The projected
salary increase established by an actuary for the retirement board based on the
member's attained age at the beginning of the fiscal year used in calculating
the member's final average salary, or

(2)
The percentage
increase considered generally applicable to members employed by the
employer.

(C)
Where the two highest years of compensation
certified for an applicant for service retirement include a percentage increase
otherwise excluded by division (B) of section
3307.501 of the Revised Code,
the executive director of the state teachers retirement system or his designee
may include all or part of such percentage increase in the calculation of final
average salary, up to a maximum of seventy-five hundred dollars, if:

(1)
The increase is related to a diminution
of compensation as the result of illness or incapacitation, provided that
completion of contributions is not authorized under the terms of section
3307.77 of the Revised Code;
or

(2)
The executive director of
the state teachers retirement system or his designee determines that other good
cause exists for inclusion.

(D)
Where a percentage increase is excluded from
compensation used to determine final average salary under the provisions of
division (B) of section
3307.501 of the Revised Code and
paragraph (A) or (B) of this rule, the applicant
shall be given written notice of the right to an appeal pursuant to this
paragraph, provided:

(1)
Requests for an
appeal shall be made by the applicant in writing within thirty days of such
notice.

(2)
The applicant shall be
afforded the opportunity to present written information explaining the
arguments for making an exception to the statutory limitation and to appear
before a review committee designated by the state teachers retirement board.
The applicant shall be informed of the date the committee will review and
consider the appeal. An applicant who has requested a personal appearance
before the committee may for good cause request delay of consideration,
provided that no more than one prior request for delay has been
granted.

(3)
All information
supporting an applicant's assertion that good cause exists for making an
exception to the statutory limitation shall be received by the retirement
system at least two weeks before the committee's scheduled review.

(4)
After consideration of the information
presented by the applicant, the committee shall submit its
recommendation to the board.

(E)
In determining
final average salary under division (C) of section
3307.501 of the Revised Code if
disability benefits to a member began before August 1, 2015, the benefits
beginning date shall be the effective date disability benefits were granted,
provided that monthly benefits continue without any interruption in the monthly
stream of benefits to the member pursuant to section
3307.57 ,
3307.58 or
3307.59 of the Revised Code or
to a survivor of the member pursuant to section
3307.66 of the Revised
Code.